Personal Automobile. November 5, Sandra Starnes, Director

Transcription

1 Personal Automobile Insurance Coverage Senate Banking & Insurance Committee November 5, 2013 Sandra Starnes, Director Property & Casualty Product Review Product

2 PART ONE Personal Automobile Insurance Coverage la Data Call Results 2

3 About the Data Call Personal auto insurance coverages Required of Top 25 writers Represents 80% market share Policies in force as of July 1, 2013 Vehicles insured (Statewide/County) with bodily injury and limits with mandatory coverages only with medical payments and limits with full coverage 3

4 Mandatory Types of Coverage Personal Injury Protection (PIP) Protection Property Damage (PD) Optional BodilyInjury Bodily Injury (BI) Some exceptionsexceptions Medical Payments ( Med Pay ) Uninsured Motorists dm i t Comprehensive Collision 4

5 Coverage Summary Statewide Percentage with: Minimum only (PIP/PD) 4.0% Bodily Injury 92.1% Medical Payments 25.4% Full Coverage 21.7% County specific distribution included in separate addendum 5

6 Coverage Summary County Highlights Policies with: Highest Lowest Minimum Coverage (PIP/PD Only) Minimum Coverage Incl. BI of 10/20 Bodily Injury Coverage Miami Dade (5.6%) Santa Rosa (1.4%) Seminole (2.2%) Osceola (88.7%) Mi i C Miami Dadei S i l (12.2%) Bodily Injury Coverage Okaloosa Osceola (96.8%) Full Coverage Lafayette Miami Dade (41.1%) (6.1%) Medical Payments Lafayette Miami Dade Coverage (57.3%) (7.7%) 7%) 6

7 Bodily Injury Coverage Limits Statewide Percentage with: 10/20 or above 92.1% 15/30 or above* 64.2% 25/50 or above 62.8% County specific distribution included in separate addendum included in separate addendum * Responses from the category Other Lower than $25,000/$50,000 are not included since it is unclear whether the limits would be lower or higher than $15,000/$30,000. However, this other category accounts for just 0.2% of total vehicles. 7

8 Percentage with: Med Pay Coverage Limits Statewide $1, % $2, % $2, % $5, % $10, % Under $5,000 53% 5.3% $5,000 or above 20.0% County specific distribution included in separate addendum 8

9 PART TWO TWO Estimated Premium Impacts: Replacing PIP with BI Coverage 9

10 Methodology Rating example (married, both age 40) Central Miami, Tallahassee (other regions shown in separate addendum) 5 large insurers (3 non standard; 2 standard) PIP premium reallocation assumption: 50% moved to Bodily Injury y 20% moved to Medical Payments 10% moved to Uninsured Motorists 10

11 Summary Of Premium Impacts From Minimum Required Limits To BI/PD (10/20/10) Decreases for almost all almost all regions for nonstandard and where there is PIP fraud for standard To BI/PD (25/50/10) Decreases for all insurers in Central Miami From Full Coverage Full Decreases for all insurers regions all regions as long as the BI and PD limits remain the same. 11

12 Estimated Impact Central Miami Married Couple Both Age 40 Non Standard Company A Non Standard Company B Non Standard Company C Standard Company D Standard Company E Policies with Minimum Required Limits PIP/PD BI/PD* 10/20/10 Change Policies with Full Coverage (10/20/10/1) No Fault Tort * System Change $2, $1, % $4, $3, % $2, $1, % $4, $4, % $1, $1, % $3, $2, % $ $ % $1, $1, % $1, $1, % $2, $2, % Source: Premium shown is annual premium from Rate Collection System information for recent personal auto rate filing. Limits shown as A/B/C/D where the BI limit per person is $A, BI limit per occurrence is $B, PD limit is $C and MP limit (if applicable) is $D. * Includes adjustment to reflect elimination of PIP. 12

13 Estimated Impact Tallahassee Married Couple Both Age 40 Non Standard Company A Non Standard Company B Non Standard Company C Standard Company D Standard Company E Policies with Minimum Required Limits PIP/PD BI/PD* 10/20/10 Change Policies with Full Coverage (10/20/10/1) No Fault Tort * System Change $ $ % % $1, $1, % % $ $ % $2, $2, % $ $ % $1, $1, % $ $ % $ $ % $ $ % $ $ % Source: Premium shown is annual premium from Rate Collection System information for recent personal auto rate filing. Limits shown as A/B/C/D where the BI limit per person is $A, BI limit per occurrence is $B, PD limit is $C and MP limit (if applicable) is $D. * Includes adjustment to reflect elimination of PIP. 13

14 Conclusion Personal auto premiums vary significantly Impact of PIP repeal will vary significantly Most policyholders already purchase BI Even policyholders that purchased the minimum required coverage of PIP/PD could see decreases with required BI limits of 10/20 or 15/30 14

15 Questions? Sandra Starnes Director, Property & Casualty Product Review Product Phone: (850)